Welcoming the focus of the 2021 Union Budget on inclusive governance policies for all-round capital spending on infrastructure and digital initiatives, Adeeb Ahamed, Managing Director, LuLu Financial Holdings and Tablez said that the Budget has been accommodative of the needs of NRIs. The budget, which spoke about the effect of the Atmanirbhar packages, focused on six core areas
- Health & well-being
- Physical & financial capital & infrastructure
- Inclusive development for an aspirational India
- Reinvigorating human capital
- Innovation & R&D
- Minimum Govt & Maximum Governance
“The budget has balanced the pace of structural reforms, continuing spending on key infrastructure around transportation and real estate. The measures proposed will boost India’s progress towards becoming a self-reliant nation,” he said.
He also said that the proposal to eliminate double taxation for NRIs on foreign retirement funds and giving FPIs a tax deduction on dividend incomes at lower treaty rates, will encourage greater infusion of funds into the country’s economy, and encourage more NRIs to take advantage of the opportunities that abound.
The Budget has also hiked the FDI cap in the insurance sector, and proposed exemption from TDS for dividend payments to REIT (Real Estate Investment Trusts) and InvIT’s (Infrastructure Investment Trusts, and Ahamed added that the proposal to allow NRIs to set up a One Person Company will encourage investments towards the country’s quick revival in 2021.
As the founding Managing Director of one of the Middle East’s largest payments company, with substantial investments in India’s payments landscape, Ahamed feels that the Budget’s thrust on developing India as a digital economy, will help sprout innovations in fintech that will ultimately enable wider scope for financial inclusion among a cross-section of the society.”
“The services sector contributes heavily to the country’s GDP, and the announcement to set up a social security net for gig economy workers and empower women to work in all categories, will encourage better diversity at workplaces and foster rapid innovation. Overall, this is a good budget for NRIs who wish to contribute to Digital India’s growth story,” he stated.